The U.S. Department of Education today announced that its Office of Federal Student Aid (FSA) will resume collection efforts on defaulted federal student loans beginning Monday, May 5th.
This marks the end of a long pause on collections that has been in place since March 2020. The Department emphasized that this action is necessary to protect taxpayers from bearing the burden of loans that borrowers willingly took out to finance their higher education.
This restart of collections will be accompanied by a significant communication and outreach initiative aimed at ensuring borrowers understand their options for returning to repayment or exiting default…